Trade groups seek to block Illinois crypto tax before January effective date
Crypto Council for Innovation and Blockchain Association are seeking a preliminary injunction to stop Illinois from enforcing its planned 0.2% tax on cryptocurrency transactions before it takes effect in January 2027. They argue the tax would cause irreparable harm and violate the U.S. Constitution, Illinois constitution, due process laws, and the federal Internet Tax Freedom Act. The tax, signed by Gov. JB Pritzker in June as a “privilege tax,” would tax transaction volume rather than income, making Illinois the first state to target crypto transactions this way. The groups say firms are already spending heavily to prepare for a tax with unclear rules and criminal penalties. Illinois is also facing a separate legal fight over a law targeting prediction markets.
